Incorrect VAT Charge

[cjpants]

For the first time I've sold something on ebay and I can see the buyer has been charged VAT on the item. I don't think this is right as:

1) The  item is clearly marked as used (item was bought at auction for £5)

2) The item is being sold and received within the UK

Can someone please tell me why this is happening?

https://www.ebay.co.uk/itm/127561787122

[tobiasd4]

Buyer is NOT charged VAT on item.

VAT is charged on the postage, ebay break this down on invoice.

It would be better if they just showed total postage cost, it confuses lots of people.

[papso22 · Accepted solution]

Buyers are also charged VAT on the buyer protection fee.

[cjpants]

Thanks folks - I understand this now.

But - ebay - you could do with making this clearer on your invoice layout as its not clear that that's what you're applying the VAT to.